ABSTRACT

Leases fall within the statutory regulatory machinery of the Rent Act 1977 and the Housing Act 1988, so restricting the ability of landlords to remove tenants and set rent. As a basic proposition, a lease will exist when the occupier of land has been granted exclusive possession of the premises. This is a question of fact, to be decided in each case by reference to the surrounding circumstances, the course of any negotiations prior to the grant of the right of occupation, the nature of the property and the actual mode of occupation of the occupier. Although the requirement of 'a term certain' has been the subject of criticism by the Supreme Court, it remains an essential ingredient for a lease: the exclusive possession must be granted for a defined and certain period of time. The benefit and burden of leasehold covenants under pre-1996 tenancies pass to the assignee of the reversion by statute.